News

All systems go as PAL returns to Europe

16 Sep 2013 by Alex McWhirter

Philippine Airlines has now appointed a sales outlet in the UK to coincide with the launch of flights between Manila and London Heathrow in November (see news, September 14).

Crawley-based Aviareps will now act as PAL's general sales agent responsible for marketing and sales distribution of PAL tickets in the UK.

At the same time, it is clear why PAL chose London to be the first gateway to mark its return to Europe.

Manila-London is by far and away the busiest route linking the Philippines to Europe, according to figures released by routesonline.com.

And as we indicated in our earlier news piece, the indirect Asian and Gulf carriers currently hold the largest market share in the absence of non-stop service.

Last year, over 128,000 passengers flew the route to London with the main market shares held by Cathay Pacific (30.1 per cent), Etihad (15.6 per cent) and SIA (12 per cent).

Way behind came Rome and Paris with over 37,000 and almost 35,000 passengers respectively. Frankfurt and Amsterdam came fourth and fifth with almost 34,000 and over 23,000 passengers.

As might be expected, KLM (the only European carrier to directly serve Manila) only achieved market leader status in Holland.

The huge market share taken by the indirect carriers means that PAL will not find Europe "a walk in the park".

Cathay Pacific remains the chief competitor threat. But the Gulf carriers are catching up.

When PAL last served Europe 15 years ago the Gulf threat was minimal. Today the Gulf's big three offer connections to Manila from cities the length and breadth of Europe.

Etihad and Qatar Airways fly twice daily to Manila from their respective hubs of Abu Dhabi and Doha while Emirates flies three times daily from Dubai. Services are operated by large B777-300ERs.

It means PAL must price keenly to compete with its indirect rivals. Many, if not most, passengers flying to and from Manila will be cost-conscious leisure or visiting-friends-and-relatives travellers. How much of a price premium will they pay for non-stop convenience?

philippineairlines.com

Alex McWhirter

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